North Carolina Down Payment Support Systems

Online Merchant account - These programs will be the Down Payment Assistance System as well as the Mortgage Credit Certificate.

You buy a house between December 1, 2009 and January 1, 2009 and should you qualify for one of those plans, you could also qualify for the $8,000 tax credit merely enacted into law in the Federal Economic Stimulus Plan.

First, who is a First Time Home Buyer? There is a first-time Home Buyer someone who has not owned a house in the prior three years. This is exactly the same qualifying definition for the $8,000 tax credit.

A Mortgage Credit Certificate (MCC) is a federal tax credit to assist home buyers with low and moderate incomes. All home owners can claim an itemized deduction for mortgage interest. An MCC “reduces your tax liability depending on a percentage of the mortgage interest that you pay.

You can claim 20% of the interest you pay on your mortgage as a credit on your federal income taxes in case you qualify for the MCC. It's possible for you to save up to .

Should you qualify for 2009, for the MCC, you will be able to join this with the $8,000 tax credit. This may reduce a purchaser's tax liability .

Who Qualifies for an MCC?

Who qualifies for an MCC is based in your income and the cost of the house you're buying. Household income means the “gross income of the mortgagor and any person anticipated to live in the residence who is 18 years old or older.”

House price limits that apply in Orange, Durham and Chatham Counties and the income are listed below.

MCC Income Limits 1 Individual $61,500 2 Persons $61,500 3 Individuals $70,500 4 Individuals $70,500

MCC Sales Cost Limits New House $220,000 Existing Residence $210,000

Who Qualifies for Down Payment Assistance?

The buyer only has to pay and the load would pay as much as $8,000 of the remaining balance.

This plan has more rigorous income limitations than the MCC plan outlined above. Like the MCC application, it can be used in conjunction with the new $8,000 tax credit on home purchases between December 1, 2009 and January 1, 2009. The down payment help, however, cannot be used in conjunction together with the MCC. This really is an either or scenario.

The income and house price limitations that apply in Durham Orange and Chatham Counties are given below.

Down Payment Assistance Income Limitations

1 Man $39,950 2 Men $45,650 3 Men $51,350 4 Persons $57,050

Down Payment Support Sales Price Limits New Dwelling $210,000 Existing Residence $210,000